Late payment 'Hall of Shame'
We have been campaigning against the practise of companies delaying payment to their suppliers for many years. Late payment can have a crippling effect on small firms. The Late Payment of Commercial Debts Act was introduced in 1998 and granted businesses the right to claim interest on late payments. The legislation did not provide a solution for many businesses and we therefore continue to name and shame businesses which make retrospective changes to payment terms, effectively squeezing their suppliers. We have also been lobbying for businesses to sign up to the Prompt Payment Code.
 
To enter a company into the Hall of Shame, email us at campaigns@fpb.org, including any relevant background information and copies of letters / emails.
 
The most recent companies to be entered into the Hall of Shame are:
 

Molson Coors

 
Brewing giant Molson Coors, which is behind beer brands such as Carling, Cobra and Grolsch, has been entered into the Hall of Shame after stretching its payment terms to over 90 days.
 
The UK brewer recently wrote to its suppliers informing them that, from September 2010, their invoices would not be processed until the Monday after the 90th day of receipt.
 
This means small businesses working for Molson Coors can expect to wait more than three months before being paid for their goods and services.
 
In a letter to its suppliers, Molson Coors blamed the move on the need to invest and said extending payment terms would make the company "more consistent with the industry standard".
 
But the Forum argues that bad payment practice among other companies is no excuse for big businesses to squeeze their suppliers. Forum Chief Executive Phil Orford has written to Molson Coors urging the firm to reverse its decision and sign up to the Prompt Payment Code. 
 

Dell Inc

 
Dell Inc, one of the world's leading information technology companies, has been entered into the Hall of Shame after informing its suppliers of its intention to increase invoice payment times by 15 days.
 
In a letter the company said it was ‘standardizing its payment terms across its supplier partners' by extending payment times from 50 to 65 days.
 
Dell told recipients that they were each ‘a valued Dell supplier' and that it wanted to make them aware of the changes.
 
But the letter is typical of the communications that are normally involved when a big company decides to increase its payment terms – giving smaller suppliers very little room to refuse or negotiate.
 
Other companies which have been named and shamed over the years: